Announcement of latest lottery licence operator postponed - once again
Announcement of latest lottery licence operator postponed - once again
Blog Article
Parks Tau, the trade and field minister, has postponed naming a winning bidder to run South Africa’s lottery once the tenure of latest operator, Ithuba, ends in May well upcoming calendar year.
Ithuba’s licence was thanks to obtain expired in May well 2023 but was extended for 2 yrs by Tau’s predecessor Ebrahim Patel after a ask for because of the then newly-appointed board of the Nationwide Lotteries Fee (NLC).
The Board, which was working with the corruption that had overwhelmed the NLC, also recommended Patel of representations by Ithuba that it were seriously affected with the Covid pandemic. This incorporated a ban over the sale of lottery tickets at the peak of the pandemic.
Regarding the extension, Ithuba had for making contributions on the NLC for distribution to very good brings about at a greater price than provided for of their Preliminary licence.
New licence operators are given 6 months to setup infrastructure, together with ticket devices countrywide, to choose in excess of from the preceding operator ahead of the incumbent’s licence ends. This most current postponement ensures that there won't be sufficient time for any clean changeover and It is actually not likely that Tau will extend Ithuba’s licence once more.
The entire process of appointing a whole new licence operator has also been tormented by allegations of conflict of fascination and other issues.
GroundUp has acquired which the NLC has contingency strategies in place to carry on funding excellent leads to for up to a 12 months In the event the lottery and also the sale of lottery tickets are suspended.
The contingency also handles funding within the party of litigation by losing bidders every time a new operator is lastly introduced, which could also derail The sleek running in the lottery.
Just in case ticket gross sales are stopped, the NLC will use its reserves of R3.nine-billion to carry on funding qualifying organisations, a resource with knowledge of the contingency strategy informed GroundUp.
In his weekend statement asserting the postponement, Tau said: “Unfortunately, I'm not ready to generate a ultimate determination at this stage. Any such conclusion right now would in all excellent conscience mean which i haven't utilized my mind with owing consideration of the many related things.”
“I have recognized issues that require even more analysis. It will be inappropriate to disclose these concerns now and their disclosure could incredibly well prejudice the proper adjudication from the awarding in the licence.”
Tau explained he was awaiting assistance on The simplest way to ensure the continuation of your lottery during the interim and the “enhancement of a programme to finalise this process”.
This, he claimed, have to be completed following session Using the Countrywide Treasury.”
Tau also hinted in the political make-up of the consortiums bidding to the licence as another attainable reason behind the postponement.
He mentioned: “I have to also make sure the proprietors and professionals on the prosperous applicants are, given that the Act states, ‘fit and correct persons’. Additionally, I must ensure that no political party or political office-bearer has any immediate economic interest during the applicant or maybe a shareholder in the applicant.”
Company Working day reported Earlier that the majority of the businesses shortlisted with the tender are politically exposed.
The Gold Rush consortium is led by superior-profile businessperson Sandile Zungu, who challenged for your ANC KwaZulu-Natal chair placement in 2022 right before dropping out following he did not garner ample guidance, the paper claimed.
Another politically connected bidder is HCI, which is vast majority-owned through the South African Clothes and Textile Workers’ Union, an affiliate of Cosatu, which is in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign to the ANC presidency.
An additional shortlisted bidder, according to Business enterprise Day, is Thebe Investment Corporation, which was Launched by ANC leaders in 1992. Thebe is half-owned by Batho Batho Rely on. The believe in has donated R60-million on the ANC because 2021, In line with declarations built to the electoral commission.
Ithuba, the holder of the licence, can also be inside the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Online games, In line with Organization Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp claimed in 2022 that Natasen, byตา ว จ หวย his enterprise Neo Solutions, contributed R2-million in the direction of the luxury mansion of the then-NLC chair Aflred Nevhutanda — while his company Neo Solutions experienced a agreement With all the NLC. Natasen told GroundUp At the moment that Neo Remedies was “appointed with the NLC’s source chain processes, as and when products and services are essential”.